High interest among private equity firms for a possible Twitter buyout
Category: #business |   By Pankaj Singh |   Date: 2022-04-21

High interest among private equity firms for a possible Twitter buyout

As per reliable sources, numerous private equity firms have started showing interest in participating in a deal for a potential buyout of Twitter Inc. This comes after Thoma Bravo displayed interest to acquire the social media giant and challenge Elon Musk’s initial offer of USD 43 billion.

It is worth noting that Tesla CEO Elon Musk offered a USD 54.20 per share deal to acquire Twitter last week, valuing the social media platform at USD 43 billion.

Following this, Twitter deployed a shareholder rights initiative that could prevent Musk’s acquisition bid. The initiative is exercisable if a party buys 15% stock without prior approval or during a hostile takeover of the company.

Even Apollo Global Management, Inc., an American investment management firm, is looking for ways to provide financing for any deal as well as is also considering working with Elon Musk or any other interested bidder. The group added that it would participate through its credit investment platform instead of its private equity business.

However, Twitter and Apollo both declined to comment on this matter. Meanwhile, the social media platform has adopted a "poison pill" to block Musk from accumulating a majority stake in the company.

For those unaware, a poison pill strategy enables shareholders' right to buy additional shares that too at a discount, further diluting any potential deal from the hostile party. This strategy is quite common among companies that are under fire from activist investors.

After the social media giant adopted a “poison pill” to prevent Musk from taking over, Twitter co-founder Jack Dorsey slammed the board of directors, claiming that it has long been the dysfunction of the company.

Even Elon Musk has claimed that the company’s economic interests do not align with the shareholders.

Source Credit:

https://economictimes.indiatimes.com/markets/stocks/news/more-private-equity-firms-express-interest-in-a-twitter-deal-report/articleshow/90925064.cms?from=mdr

  • shareShare
  • Twitter
  • Facebook
  • LinkedIn


About Author

Pankaj Singh     Twitter

Pankaj Singh

With a commendable experience of content creation under his belt, Pankaj Singh, a qualified Post Graduate in Management, boasts of having worked as a freelance writer and an insurance underwriter. Additionally, Pankaj has also enriched his qualification portfolio with Read more...

More News By Pankaj Singh

Labour recasts green growth plan as UK version of Inflation Reduction Act

Labour recasts green growth plan as UK version of Inflation Reduction Act

By Pankaj Singh

Labour party of the UK has decided to invest in good, clean energy jobs by recasting its green growth initiative as the British version of the US’s Inflation Reduction Act. Ed Miliband, the shadow net zero secretary, has been tasked with ensuri...

Virgin Orbit seeks funding lifeline to save itself from bankruptcy

Virgin Orbit seeks funding lifeline to save itself from bankruptcy

By Pankaj Singh

Rocket-building company Virgin Orbit is reportedly looking for strong funding options to avoid bankruptcy, which could occur soon in case no deal is finalized. The firm has paused most of its operations and furloughed most of the staff while it seeks...

Sea announces MariBank access for select customers on invite-only basis

Sea announces MariBank access for select customers on invite-only basis

By Pankaj Singh

Tech company, Sea has reportedly opened access to its newly launched MariBank for the public on an invite-only basis. Earlier, access to the digital bank was limited to the employees of the firm. Customers are offered a Mari Savings Account with a 2....